FTC - Blown out of proportion.It should be noted, among other things, that 1800 Contacts was the only online supplier of contact lenses to receive notice from the FTC with respect to breaking the guidelines set out in Fairness to Contact Lens Consumers Act. Now, from what I can tell, the only thing that FTC has done as an act of enforcement - was give a warning – No fine. No further investigation.
So, if COA did in fact step outside the guidelines, wouldn't it be fair to assume that the FTC will follow a similar protocol - only after conducting their own investigation - which I highly doubt will occur considering COA has not been indicated in any formal complaints by real consumers.
Further COA also has the benefit of 1800’s misfortunes as the ‘example’ of what happens when one breaks the rules. They have the opportunity to adjust their procedures accordingly - if need be.
Bottom line - I think this has been blown way out of proportion – and do investors really think a large percentage of people are really buying contacts without a prescription? Why would one do that? REMEMBER – Contacts are not prescription drugs – nobody is getting high off of them or selling them to kids. And further remember, COA generates a large % of revenue outside of the US – look to the Lensway acquisition – and these guidelines don’t apply.